Tuesday, October 23, 2012

The different types of home insurance

There are a number of different types of home insurance - the type you choose will depend on where you live. Each policy will typically cover the contents, structure, and liability for the home and its owners. Specific policies might cover more things than others, so it's important to understand your individual policy.

Insurance for the house

There are currently 3 different types of house insurance available - HO-1 (basic), HO-2 (broad), and HO-3 (special). Both broad and basic coverage will only cover what is named - therefore, they are often referred to as peril coverage. Basic coverage applies to eleven types of losses: hail or windstorm, impact, riot, fire, sprinkler leakage, volcanic eruption, vandalism, sinkhole, smoke, lightening, and explosion. Broad coverage includes these eleven plus falling objects, weight of snow/ice/or sleet, and accidental water damage. Special coverage means the opposite of peril - everything is covered, unless it is excluded in the policy. The type of home insurance coverage you need is a personal decision and it is best to consult with an insurance expert.

Insurance for the condominium

Condominium insurance policies cover your condo for the things that are not covered by the association's master policy. Each association policy is different, so it is necessary to go over it before purchasing condo insurance. These policies are typically very flexible and allow you to choose how much and what coverage you require. Your association might determine what you are required to buy, but the specifics vary from condo to condo.

Insurance for rented properties

Finally, there is rental insurance. This insurance is necessary if you own a home but are renting it to others. Tenants bring additional liability, making a traditional home insurance policy inappropriate. Since you are receiving income, a rental home will require a business policy. Rental insurance policies provide you with additional coverage such as the loss of rent, and also remove much of the personal property coverage - tenants should purchase their own insurance for their personal property.

Replacement cost against actual cash value

One last thing to be aware of when shopping for home insurance is if the insurance covers the replacement value or actual cash value of your home. Replacement means your house is insured for the cost to replace the items with new items. Actual cash value covers the depreciated value of your home and its contents. Actual cash is cheaper, but it means less coverage. What you choose is up to you and the value of your home and property.

Thursday, October 18, 2012

A brief survey of the factors less recognised in auto insurance quotes trends

Looking ahead in order to plan your budget, you love any spendinghs to be easily or at some degree predictable. But the real life is rarely a predicatble thing so, without any warning, you can suddenly find all your careful plans thrown out of joint. Insurance rates are no exception to this. To understand why, we need to remind you how auto insurance works. Everyone pays into a central fund. When accidents happen, people claim and the money is paid out. The rest must cover the administrative costs and provide a profit. So, in their business model, insurers are looking for drivers who will never claim or only make small claims. If you suddenly look like a bigger risk, your personal rates will rise. If too many people have been claiming, your rates will rise. But there may be other less obvious reasons for your rates to rise.

Let's start with changing your vehicle. Most people upgrade, buying a new or newer vehicle. With more money at risk, you may decide to buy collision and comprehensive cover. This will be required if you have taken out an auto loan. Inevitably, this means you will pay more unless your new vehicle is cheaper to insure. Look carefully at the theft rates and insurance ratings before deciding what to buy. Now think about changing your job. If you now have to commute a longer distance during peak hours, the risk of an accident rises and so will your premium. If your new job will involve more driving, the rates will also rise. Similarly, before you change your address, look at the premium rates associated with the proposed ZIP code. Many people face an increase even if all they are doing is moving across the street. If you manage to take these three factors under your control, you can minimize their impact on your auto insurance quotes next time. Failure to plan could mean a very unpleasant surprise when the next auto insurance quotes arrive and throw all your careful budgeting into disarray.

Wednesday, October 3, 2012

Some questions you should ask yourself for using free auto insurance quotes effectively

There are a few rules to follow when getting free auto insurance quotes. The first is to get as many as you can to compare. The second is to make sure you are comparing the same things. The third is to do a little bit of research on the company that is giving the quote.
If you already have a policy, review it. If not that is ok, this guide should help you go over the finer points to analyzing your quotes. Get out some paper, write down these questions, or copy paste this into a document, and leave space for answers.
Does the quote represent adequate coverage for my assets?
Quotes for liability usually follow a pattern like this: 50/100/25 This means in any one accident $50,000 is the max for an individual's medical coverage, $100,000 for total medical bills for any number of people in one accident, and $25,000 total for property damage. If you have little or no assets and you don't make that much income, then this should be fine. However, you should purchase auto insurance coverage that is equal to the net worth of your assets or the limit of coverage from the company. If the limit is a lot lower than your total assets then you need to carry an umbrella policy to take up the slack.
Do I need to carry PIP or under/uninsured medical coverage?
PIP is personal injury protection. Find out how much your personal medical plan will cover in the event of an auto accident. You may find if you need extensive work or rehabilitation therapy your personal medical insurance might not cover this for an auto accident, and you will need to sue for damages. If the other person has no viable assets and his policy is a minimal policy you may be paying out of pocket for your injuries; or worse yet have to forego treatment. If however your personal medical can handle such treatments, then there is no need to purchase this coverage.
Is the company credible?
Once you have your quotes research the insurance company. Price isn't everything. The company may have the cheapest quotes because they don't pay out claims. Use an online search engine to see if they have had service complaints. You're buying a service, and they should perform professionally.
Using free auto insurance quotes is a great way to save money; let us help you get started.